Another key reason for youth borrowing more is the availability of buy now, pay later service providers, which have become popular in recent years.
A lot of (people) are also sold on the idea of a buy now, pay later model. It (seems) embedded into society through social media that it is okay to borrow debt to sustain the lifestyle that you want to have, said Ms Lee.
Ms Joey Tan, centre manager of Arise2care Community Service, said that many are attracted to such unsecured loans as they are easy to access and do not require a good credit score.
These instalment plans are typically interest-free. However, miss a payment, and consumers could get charged up to 5 per cent interest on the outstanding amount.
(For these providers), they don’…
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